These rights constitute a protection mechanism for shareholders. If you are about to start a business or are in the capital raising phase, get to know them! They're sure to get you out of a hurry.
Also known as the “right to drag”, constitutes a mechanism for the protection of the rights of majority shareholders.
It allows majority shareholders to dispose of their shareholding in the company, leading minority shareholders to sell their shares, when the purpose of the buyers is to acquire all of the outstanding shares in order to have total control of the company.
In short: It protects the majority shareholder (or the buyer) by ensuring the total sale of the company, forcing minority shareholders to sell under the same conditions.
El “right of accompaniment” It is the mechanism that aims to protect the interests of shareholders and/or minority partners, granting them the right to dispose of their participation, when a partner and/or majority shareholder decides to sell their shareholding.
In other words, it allows the partner and/or minority shareholder to join the transaction under Same conditions than the majority shareholder who sells.
In short: It protects the minority shareholder, allowing them to demand to be included in the sale to leave the company together with the majority shareholder and at the same price.
Of course, in order to exercise them, they must be agreed in the statutes or in a Shareholder Agreement and meet different conditions to be able to apply them, such as:
For the case of Tag Along, it is also required:
It will not always be necessary to include the Drag Along And the Tag Along in the statutes, it will depend on the details of the shareholders and potential investors.
Remember that what matters most to an investor is taking care of their investment.
Do you have any questions left? In RMG LAWYERS we specialize in corporate law and are happy to support you, send an email to l.manzano@rmgsc.com
Buy the legal services and products you need online.
Go to the store
Do you want to keep up to date with everything we do? Follow us on all our social networks!
Give a like
For everyone
Entrepreneurs
Companies
4
Oct
2023
In the business world, it is essential to understand the differences between a company name and a brand, since both terms are fundamental to the operation and identity of a company. Although often used interchangeably, they represent different concepts that play key roles in the success of a business.
For everyone
Entrepreneurs
companies
For everyone
Entrepreneurs
Companies
20
Jun
2025
Registering your trademark is not an optional process, it's a legal need that protects the identity, investment and reputation of your business. In this article, we explain what a trademark is, why it's vital to register it and the risks of not doing so, as well as the keys to ensuring that it really belongs to you.
For everyone
Entrepreneurs
companies
For everyone
Entrepreneurs
Companies
25
Jun
2024
Small and Medium Enterprises (SMEs) are fundamental to the Mexican economy, representing a large part of the country's employment and production. However, many of these companies operate informally, which can limit their growth and sustainability.
For everyone
Entrepreneurs
companies
.jpg)
